Home Buying in Millburn>Question Details

prayerhuang, Home Buyer in Livingston, NJ

Can I rent the primary residence house out for a couple of years?

Asked by prayerhuang, Livingston, NJ Sun Apr 21, 2013

I recently bought a house as our primary residence with the intention to live there because of the good school area. However, our plan might change and we probably won't move in within about 3 years. The loan is for primary residence. So can I rent this house out for this period of time and move in a couple of years later? Do I have to tell the bank to change the loan type to investment property loan? Normally what would the banks do for this situation? Thanks!

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Hi prayerhuang,

Many homeowners find themselves in similar situations like yourself and ends up renting out their homes. I've never heard of a bank taking action against these homeowners.

There is a demand for rental homes in Millburn and Livingston. We are experiencing high traffic of renters but not enough housing inventory and rentals priced right are renting out within a couple days to a couple of weeks!

I am available to discuss your rental options further and view your home to come up with the best renting price possible.

Laquita Baez
Weichert Realtors
973.687.7095
lbaez@weichert.com
0 votes Thank Flag Link Mon Apr 22, 2013
Many people have done what you are doing. I have not ever heard of the bank making a big deal about it. It may also depend on the situation if you have what the banks determines a legit reason. I would run it by your Mortgage professional and see what he recommends. Also consult with your realtor.

Don't think there is a such thing as a rental permit in Livingston. Javier is out of state.
0 votes Thank Flag Link Mon Apr 22, 2013
We can help you find a Tenant, at no cost to you. Feel free to call my cell, text or e-mail me:

Jeff Rosenberg
Owner
Century 21 Norma Altman Realtors
221 Main St.
Millburn, NJ 07041
(o) 973-376-9393
(c) 973-908-5282
jrosenbergathome@gmail.com
0 votes Thank Flag Link Sun Apr 21, 2013
Well, the first thing you want to make sure you do is get a rental permit, and avoid issues with the town. As far as the bank, I've seen people who simply rent out the property that they've financed as a primary residence and never had a problem. But, the fact remains that you JUST financed as a primary residence, likely with a lower down payment and interest rate than what it would have been had you financed it as an investment property. If you're the type who wants to do things the right way and sleep well at night without worrying about something coming back to bite you in the you know what, call the bank and inform them of your situation and see what they say. You should also notify your homeowner's insurance company.

Good luck!

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Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(631) 659-2011 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Sun Apr 21, 2013
Do I have to get a permit from the town for rental?
What do banks normally do for this situation? Are they going to cancel the loan or increase the rates?
Flag Sun Apr 21, 2013
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